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A concession agreement is a negotiated contract allowing a company to do business under specific requirements. It can refer to a contract between a foreign company and a government allowing business in that country, or an agreement granting exclusive rights in exchange for negotiated terms. In the business world, these agreements are crucial for foreign companies to operate in a country, often involving incentives for the company from the government. When the government is less enthusiastic, the company may need to make concessions.